Can BRICS nations cripple the US economy amidst Donald Trump’s arrogant overconfidence?

BRICS vs US Trade War: Trump’s tariffs target China, India and Brazil, risking global economic instability. While BRICS industries face massive job losses, US consumers may see inflation. Complete trade collapse is unlikely due to deep interdependence, but supply chains could be disrupted long-term.

New Delhi: Donald Trump has announced a heavy tariff on the BRICS countries (Brazil, Russia, India, China, and South Africa) as a threat to the US and the dollar. Especially China, India, and Brazil have been targeted. If these three countries do not come under the pressure of America and stop trade from America by taking retaliation, it will have far-reaching consequences.

Dependence and potential loss to BRICS

1. China: America is China's largest export market, where China sends $575 billion worth of goods per year. If the business stops, China's electronics and manufacturing industry will suffer a huge shock. Unemployment may increase in industrial cities like Shanghai and Guangzhou.

2. India: India's IT and pharma sectors are dependent on America. 60% of income from companies like TCS and Infosys comes from the US. Millions of jobs can go due to the closure of businesses.

3. Brazil: Brazilian farmers export soybeans, coffee, and minerals to America. The agricultural economy will collapse due to the stoppage of trade.

America will also be impacted

Cheap electronics from China and IT support from India will stop, which will force American consumers to face inflation.

Global demand for dollars may decrease, as BRICS countries will insist on increasing trade in their currencies.

Search for other options

America will try to depend on countries such as Vietnam (electronics), Bangladesh (textiles), and Mexico (automobiles), but these countries do not have as much production capacity as China and India.

The trade war will harm both sides. However, the economic dependence between the US and the BRICS countries is so deep that a complete trade breakdown does not seem possible. Nevertheless, Trump's action can affect the global supply chain and geopolitics for a long time.

India has witnessed an unprecedented trend of surging exports to the US alongside increasing imports from China. Analysts suggest China may be rerouting its exports to the US through India to avoid tariffs imposed by the US.

Putin also wants to revive the Russia–India–China (RIC) trilateral dialogue that emerged in the late 1990s, rooted in former Russian Prime Minister Yevgeny Primakov’s vision of a trilateral Eurasian power bloc to balance Western dominance.

The Roadblocks

China perceives India as a strategic competitor and seeks to limit its rise on the global stage. The country views India's growth as challenging its regional dominance. Unable to confront India directly through conventional warfare, China has strategically aligned with Pakistan to counterbalance India's influence.